The market shares of televisions made by Korean electronics makers in China have dropped below 5 percent due to strong sales of the appliances made by Chinese companies, according to research firm IHS on Monday.
IHS data showed the market shares of TVs made by Chinese firms have steadily risen from 76.6 percent in 2014 to 81.9 percent in 2015. The figure increased to 84.3 percent this year through September.
Meanwhile, the portion of Korean TV makers, including Samsung Electronics and LG Electronics, has been declining. The combined share dropped from 6.9 percent in 2014 to 5.6 percent in 2015. This year through September, the figure further dropped to 4.5 percent.
During the same period, the portion of TVs made by Japanese firms has also gone down from 9 percent in 2014 to 6.6 percent in 2015 and to 4.4 percent this year.
The gap between local and foreign firms has widened as Chinese TVs, which are favored by the government in terms of subsidies and distribution channels, have a cost edge over foreign rivals, according to industry watchers.
However, both Samsung and LG plan to keep focusing on premium products instead of having cost competition with local rivals.
“We don’t plan to compete with local rivals in the Chinese TV market with price. Instead, we will continue to focus on premium markets where we have an edge over local rivals,” a Samsung Electronics’ official told The Korea Herald.
The two tech giants also said they plan to keep focusing on premium markets in North America and Europe.
According to the US research firm 1010data, the combined TV sales of Samsung and LG account for nearly half of the US television market.
The data showed that this year through September, Samsung Electronics’ television topped the list with a 39.9 percent share, followed by Chinese TV maker Vizio with a 17.5 percent share and LG Electronics with an 11.1 percent share.
By Shin Ji-hye (email@example.com)